Hawker Beechcraft subcontractor looks to compel $16.4 million payment

By Caroline Salls

Pittsburgh, Oct. 18 - Hawker Beechcraft, Inc. subcontractor L-3 Communications Integrated Systems LP is asking the U.S. Bankruptcy Court for the Southern District of New York to order Hawker Beechcraft to pay $16.41 million owed to L-3 under a government pre-paid claim, according to a Thursday court filing.

L-3 said it provides material support for Hawker Beechcraft's T-6 Texan II aircraft program. Under a joint primary aircraft training system, Hawker Beechcraft subcontracted with L-3 to supply aircraft parts, including engines, landing gear and propellers.

In addition, Hawker Beechcraft has subcontracted with L-3 to provide logistical support for T-6 aircraft located in Iraq, which includes maintenance, aircraft parts supply, maintenance training and student pilot training.

Since Hawker Beechcraft filed for bankruptcy, L-3 said it has made numerous offers to explore ways it can help in the company's efforts to reorganize its businesses.

L-3 said its "efforts not only fell on deaf ears," but were reciprocated by Hawker Beechcraft's failure to pay L-3 for the $16.41 million claim, which results from pre-bankruptcy goods and services provided by L-3.

Through a comprehensive federal statutory regime, L-3 said Hawker Beechcraft has received, or is entitled to receive, payment from the government on account of these claims as a conduit for L-3.

L-3 said Hawker Beechcraft's only two options for use of these funds are to use them to satisfy the L-3 claim, as intended by the government, or to reimburse the government.

"There is no third option by which the government funds become property of the estate," L-3 said in the motion.

A hearing is scheduled for Nov. 15.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft. The company filed for bankruptcy on May 3. Its Chapter 11 case number is 12-11873.

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